Presentation on theme: "CHAPTER 5 MARKETING : DEVELOPING RELATIONSHIPS"— Presentation transcript: 1 CHAPTER 5 MARKETING : DEVELOPING RELATIONSHIPS Show
2 Part 1 Part 2 Part 3 Customer-Driven Marketing 3 Learning Objectives LO 13-1 Define digital media and digital marketing and recognize their increasing value in strategic planning. LO 13-2 Demonstrate the role of digital marketing and social networking in today’s business environment. LO 13-3 Show how digital media affects the marketing mix.
LO 13-4 Define social networking and illustrate how businesses can use different types of social networking media. LO 13-5 Identify legal and ethical considerations in digital media. After reading this chapter, you will be able to: Define digital media and digital marketing and recognize their increasing value in strategic planning. Demonstrate the role of digital marketing and social networking in today’s business environment.
Show how digital media affect the marketing mix. Define social networking and illustrate how businesses can use different types of social networking media. Identify legal and ethical considerations in digital media. 4 Growth and Benefits of
Digital Communication
5 Growth and Benefits of Digital Communication 6 Using Digital
Media in Business 7 Digital Media and the Marketing Mix 8 Digital Media and the Marketing Mix
9 Product Considerations
10 Distribution Considerations 11 Promotion Considerations 12
Pricing Considerations 13 Social Networking Social Network 14 Types of Consumer-Generated Marketing and Digital
Media 15 Social Networks Increase in social networking across the world is exponential It is estimated that adults spend one of every five online minutes on social networking sites As social networks evolve both marketers and the owners of social networking sites are realizing the opportunities such networks offer Large reach for
the advertiser Influx of advertising of advertising dollars for site owners The hottest trend today is the use of social media to reach even more potential customers. You probably have your own Facebook page and maybe you follow a favorite twitter. Perhaps you have a Myspace account. Three of the most prominent sites are Facebook, Twitter, and Myspace. In the following few slides, we will look at them in more detail.
16 Myspace Offers users the chance to create a profile and connect with other Myspace members across the world Emerging musicians are using
Myspace to record and share their music and users can create social playlists of music from famous artists For businesses, Myspace can be a creative means of marketing through the use of profiles, advertising, music, videos, and other forms of online media Myspace offers users the chance to create a profile and connect with other Myspace members across the world. Users can invite people to be their Myspace friends, watch videos, listen to and promote music, instant
message their friends, write on various topics (called forums), network with friends and colleagues, and play games. Due to what some analysts say was a failure to innovate, Myspace now trails behind Facebook in popularity. Myspace hopes that redesign and content changes will help to reinvigorate the site. 17 Facebook The most popular social networking site in the world
18 Twitter Twitter is a hybrid social networking and micro-blogging site that asks users one simple questions: “What are you doing?”
Allows 140 characters or less Approximately 23% of users report that they follow businesses on Twitter Companies announce sales, promotions, and product updates via tweets Can help (re)build customer relationships Firms are using Twitter to gain a competitive advantage Twitter is a hybrid of a social networking site and a micro-blogging site that asks users one simple question: “What are you doing?” Members can post answers
of up to 140 characters, which are then available for their registered “followers” to read. Twitter has quickly transformed from novelty to serious marketing tool, with the company announcing plans to generate revenue through sponsored tweets and working to make the service more user-friendly and to build customer relationships. 19 Sponsored Content Marketing Videos
20 Blogs and Wikis Blog Wiki 21 Media Sharing Video Sharing Photo Sharing 22 Media Sharing Viral Marketing Podcast
23 Virtual Worlds Allow users to select an avatar and live out an alternative life online Many virtual worlds allow users to buy and sell goods, services, and even real estate—all while
spending real money Firms are looking toward virtual worlds to familiarize consumers with their products and services Firms are using virtual technology for recruiting purposes By interacting with the public virtually, businesses hope to connect with younger generations of consumers Games and programs allowing viewers to develop avatars that exist in an online virtual world have gained in popularity in the 21st century. Second Life is a social
network with a twist. It is a virtual, three-dimensional game world created by users that features its own economy, its own lands, and residents of every shape and size. Second Life has the most potential for marketers, given that avatars can purchase property, goods, and services. Businesses are looking toward Second Life to familiarize consumers with their products and services. Firms are not only creating brand loyalty by connecting with Second Life residents, they are also using consumer
knowledge and money to earn virtual and real-world profits. 24 Mobile Marketing Consumers increasingly do their business and shopping
from mobile devices and smartphones Requires marketers to adapt to new technologies and consumption patterns Marketers spent $1.2 billion on mobile marketing in 2011 E-commerce sales on smart phones totaled $5 billion in 2011 Marketers expect this number to rise in upcoming years Almost everyone has a smart phone today. Marketers uses mobile phones to send shoppers timely messages related to discounts and shopping opportunities.
The smart phone’s ability to find retailers and entertainment and to organize an itinerary is changing the nature of consumer and business relationships. The most important feature of apps is the convenience and cost savings they offer the consumer. 25 Common Mobile Marketing
Tools
26 Common Mobile Marketing Tools 27 Mini Movies and Trailers to Sell Real
Estate
28 Applications Applications are adding an entirely new layer to the marketing environment Approximately half of all American adult cell phone users have applications on their mobile
devices Most important feature of apps is the convenience and cost savings they offer to the consumer Companies are beginning to use mobile marketing to offer additional incentives to customers An estimated 70% of U.S. consumers will own smart phones by 2014 Applications are adding an entirely new layer to the marketing environment, as approximately half of all American adult cell phone users have applications on their mobile devices. The most
important feature of apps is the convenience and cost savings they offer to the consumer. Certain apps allow consumers to scan a product’s barcode and then compare it with the prices of identical products in other stores.
29 QR Codes QR codes are black-and-white squares that sometimes appear in magazines, posters, and storefront displays Users who
downloaded QR scanning app can open their smart phone and scan the code which contains a hidden message accessible with the app QR scanning app recognizes the code and opens the link, video, or image on the phone’s screen Marketers are using QR codes to promote their companies and offer consumer discounts Another application that marketers are finding useful is the QR scanning app. QR codes are black-and-white squares that sometimes appear in magazines,
posters, and storefront displays. Smart phone users who have downloaded the QR scanning application can open their smart phones and scan the code, which contains a hidden message accessible with the app. The QR scanning app recognizes the code and opens the link, video, or image on the phone’s screen. Marketers are using QR codes to promote their companies and offer consumer discounts.
30 Widgets Widgets are small bits of software on a website, desktop, or mobile device that enables users “to interface with the application and operating system” Have been used by companies as a form of viral marketing Users can download the widget and send it to their friends with a click of the button Can update the
user on the latest company or product information, enhancing relationship marketing between firms and their fans Widgets are small bits of software on a website, desktop, or mobile device that enables users “to interface with the application and operating system.” Marketers might use widgets to display news headlines, clocks, or games on their web pages. Widgets have been used by companies such as A&E Television Network as a form of viral marketing—users can download the widget
and send it to their friends with a click of a button. 31 Using Digital Media to Reach Consumers 32 Using Digital Media to Learn about
Consumers 33 Using Digital Media to Learn about Consumers 34 Legal and Social Issues in Internet Marketing 35 Privacy Current technology has made it possible for marketers to amass vast quantities of personal information, often without consumers’ knowledge, and to share and sell this information to interested third parties Cookies are often used for tracking & scraping is an activity where companies offer to collect
personal information from social networking sites and other forums Laws and regulations have difficulty keeping up with the rapidly- changing Internet Federal Trade Commission considering creating legislation that limits information companies can gather online, possibly: An online privacy “Bill of Rights” to protect consumers from having their information tracked without permission Many web advertisers are attempting self-regulation
The unprecedented growth in information technology and the Internet has created legal and social issues that heretofore were unknown. These challenges typically fall in one or more of the categories of privacy, identity theft, and intellectual property. Privacy concerns are probably the most urgent of the legal and social issues today. Consumer surfing and purchasing behavior is often tracked on the Internet through the use of “cookies” that store data on customers. Another Internet
privacy issue occurring more frequently is “scraping,” an activity where companies offer to collect personal information from social networking sites and other forums. Since Internet privacy issues have become such a problem, regulators are proposing bills to address the issue. Due to consumer concerns over privacy, the Federal Trade Commission (FTC) is considering developing regulations that would better protect consumer privacy by limiting the amount of consumer information that
businesses can gather online. Other countries are pursuing similar actions. In the United States, one proposed solution for consumer Internet privacy is a “do not track” bill, similar to the “do not call” bill for telephones, to allow users to opt out of having their information tracked. 36 Identity
Theft Identity Theft
37 Online Fraud Online Fraud 38 Intellectual Property
39 Digital Media’s Impact on Marketing Which of the following are web based journals in which writers can editorialize and interact with other Internet users?blogs Web-based journals in which writers editorialize and interact with other Internet users.
Which of the following statements is true of digital media in the context of business?Which of the following statements is true of digital media in the context of business? They can improve communication within and between businesses. Which of the following statements is true of the Internet? It has made it possible for businesses to reach previously inaccessible markets.
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